Retail Deduction Recovery Strategies Every Food Supplier Should Know

Imagine this: a food supplier delivers 20 truckloads of salsa to a retailer. Everything looks good—until the next remittance statement. Suddenly, thousands of dollars are missing. The codes? “Shortage,” “labeling error,” and “freight non-compliance.”

This scenario isn’t rare. Retail deductions cost suppliers an average of 2–5% of gross sales annually, according to industry benchmarks. For a $10 million food brand, that’s as much as $500,000 silently leaking away.

The good news? Most deductions are disputable. The trick is having the right processes in place:

1. Audit deductions weekly – Don’t wait until month-end. Small issues snowball fast.

2. Know retailer codes – Walmart’s OTIF deductions differ from Kroger’s shortage claims. Precision matters.

3. Keep airtight documentation – Bills of lading, packing slips, ASN confirmations—they’re your strongest defense.

4. Dispute aggressively but smartly – Not every claim is worth the fight. Prioritize high-dollar, high-probability cases.

Woodridge Retail Group has seen firsthand how suppliers who take a disciplined approach to deductions protect their margins and even find funds to reinvest in growth.

Don’t let deductions quietly erode your profits. Connect with Woodridge Retail Group to learn how our deduction recovery solutions, powered by HRG, can help you reclaim what you’ve already earned.